Chargebacks911 wants to modernize the crypto chargeback process: Monica Eaton

Transactions on the blockchain are immutable, meaning they are difficult to reverse. The immutability of transactions on the blockchain makes it difficult to navigate the chargeback process in the cryptocurrency space.

One company is tackling this problem. Chargebacks911 is working hard to modernize the chargebacks and dispute process in the cryptocurrency ecosystem. Coinjournal sat down with its founder, Monica Eaton, to discuss in depth how the company is using its platform to tackle this problem.

Question 1: What is the purpose of Chargebacks911 and how does it work to achieve chargeback management in the crypto and web3 ecosystem?

Chargebacks911’s mission is to modernize the dispute and chargeback process – to simplify complexity by bridging legacy infrastructures and post-transaction data exchange. We offer an agnostic, data-driven solution that simplifies cumbersome workflows with intelligent, adaptive technology.

Chargebacks911’s platform supports merchants from every industry sector, worldwide, including customers in 87 countries, and powers many of the largest financial institutions. Our platform pioneered some of the first crypto businesses, having launched our digital dispute resolution module in 2020. Like other alternative payment methods that do not have an innate dispute workflow, Chargebacks911’s configurable interface offers a turnkey alternative to crypto platforms and their merchants worldwide.

Question 2: Are there different classifications of cryptocurrency scams, i.e. those targeting individuals, businesses or other entities? Which is the most common, and which is the most difficult to detect?

Fraudsters love it when their scams involve crypto because crypto payments are notoriously difficult to trace and recover. Because these types of payment methods are not regulated in the same way as the government’s currency, such as the US dollar or euro, which also includes card payments exchanged in these currencies, such as Visa and Mastercard, there are vastly different protection rights and reporting policies. . As a result, crypto scammers can more easily exploit loopholes, such as sending messages to social media, trying to build fake relationships with LinkedIn users, Facebook users, and more, hoping to pressure victims into fake crypto investments. While many crypto schemes target businesses, many more target individuals. For example, in June 2022, the FBI warned that cryptocurrency scammers pose a “significant threat” to LinkedIn users.

Because crypto is confidential and secure, there is a growing concern that cryptocurrency can be used for illegal activities. After all, criminals crave anonymity. And unfortunately, there is a growing number of ransomware attacks that rely on crypto payments from victims.

Crypto is new, so there is a lot of misinformation and false assumptions about how it works. There is a bit of mystery about it. Scammers take advantage of the confusion by suggesting crypto investments that don’t really make much sense – but only if you do your due diligence and learn about the subject. The burden is on you. If you simply take the scammer’s word for it, you’re going to be in a lot of trouble.

Question 3: How much did crypto investors lose to scam projects last year, and how can they protect themselves in the future?

By 2022, investors lost an estimated $680 million to crypto scams. And while you’ll occasionally hear about a breakthrough hacking attack, most scammers rely on “human engineering” to exploit victims, meaning they rely more on trickery than computer wizardry. Think rockfishing more than hacking.

To be safe, don’t invest in anything you don’t understand and haven’t thoroughly researched – including crypto. It’s a recipe for disaster. There is enough risk and uncertainty in traditional investments; putting your money into something when you don’t know the rules, risks and danger signs will make it very difficult for you to protect yourself.

The digital currency landscape continues to take shape. Regulators need to ensure there is a basis to protect consumers, much like the chargeback process works today – only more configurable. Without this protection mechanism, crypto will continue to face challenges in maintaining sustainable adoption and data integrity – arguably one of the biggest barriers to mainstream growth.

Question 4: Transactions on the blockchain are immutable, meaning they cannot be reversed. Does this mean that reversals will not be necessary in the crypto space?

A blockchain is a permanent record of transactions in a shared, transparent ledger. The digital information is recorded and distributed in a network, but it cannot be edited or changed afterwards. The ledger is safe and protected. Because it’s decentralized, there isn’t a gatekeeper in control or a third party that can put their thumb on the scales and destroy the system.

Without blockchain technology, Bitcoin and cryptocurrency could not exist. It is the functionality that gives the crypto concept life.

It is widely believed that the current chargeback system is unfair to retailers, but without this protection mechanism, the idea of ​​e-commerce would be short-lived – not to mention the migration from cash to cards, and beyond. Crypto does not have chargebacks, which many traders find very attractive. But remember that the chargeback mechanism was put in place as a consumer protection tool in 1974 because consumers were afraid of credit card fraud. Will our politicians try to create a clawback rule for crypto in the future? Whether history repeats itself, time will tell. As it stands, the buyer today has very little chance of getting their money back if they were defrauded or defrauded, and this also applies to the seller of their crypto for exchange. The final word on cryptoregs has yet to be written – policy on this topic requires significantly more collaboration and domain expertise. As the saying goes, every problem presents an opportunity. Stay tuned for more…

Question 5: FTX and LUNA collapsed last year, causing billions of dollars in losses for both private and institutional investors. What is your take on governments around the world tightening their rules against cryptocurrency companies after the FTX collapse?

China, Egypt and a few other countries have banned cryptocurrency, which will obviously limit where and what you can do with it. China is a huge marketplace and its rejection of crypto will limit its growth. But other countries have embraced crypto, including Ukraine, which is using crypto donations to help finance the fight against the Russian invasion. Otherwise, you can spend it the same way you would spend any other money – and exchange it for any product or service where it is accepted.

The collapse of FTX has clearly damaged crypto’s reputation. Fair or not, it gave crypto a black eye and tarnished its reputation with the general public. Politicians are often hair-trigger sensitive to negative PR, so crypto supporters should anticipate an increase in government scrutiny.

Question 6: What would you tell companies looking to integrate fraud prevention techniques into their business?

Measurable things matter. Look, there are a lot of terrible things about online scams. But at least it’s something you can measure, which means you can test and see what actually helps you make — and keep — the most money and limit liabilities. Don’t take a fraud prevention company’s word for it. Instead, have a “dashboard of metrics” that make sense for your specific business model and test the effectiveness of your anti-fraud strategy. At Chargebacks911, we guarantee a successful, scalable return. Not all companies do that.

Question 7: How does Chargebacks911 help companies prevent fraud and protect their consumers and investors?

Our software services suite offers a dynamic mix of modular capabilities—including advanced analytics, AI, and machine learning—that work seamlessly behind the scenes to streamline processes and provide rich data feedback. By using Chargebacks911, clients can leverage greater business intelligence that dramatically helps improve decision making with more effective efforts to achieve desired results. Chargebacks911 offers technology, data connections and services designed to help keep clients informed of the most relevant information. Our platform alleviates demanding workflows to ensure that dispute actions are initiated in a timely manner, and related ongoing liabilities cease. It’s our passion to help clients position themselves for long-term, sustainable growth, expanding technologies and connections that allow them to focus on their core competencies with the confidence of our robust, back-office automation tools.

Question 8: Finally, what are the main trends you see in the cryptocurrency market during 2023?

Is crypto the currency of the future? Will it develop into a universally accepted currency that outcompetes the euro and the dollar? Or will it remain a niche curio of dubious legality?

The strength of crypto – especially its decentralization, independence, privacy and freedom – is also what makes it vulnerable to market volatility and government control. There are philosophical true believers who believe in it as a matter of principle. They will continue to invest in crypto no matter what because they ideologically support the concept. But for anyone else looking at crypto purely as an investment, it’s unclear what the future holds. It can go up. It can go down. More likely than not, it will go up and down repeatedly, over and over, until the dust begins to settle and its usefulness is established. We still don’t know if crypto will become a ubiquitous presence in modern retail, or if it will be a shadow currency that only exists on the periphery.

Historically, why has gold been so valuable? Why have diamonds been so sought after? Ultimately, it’s because we want them. Overall, we value them as a society. But it’s worth noting that gold and diamonds have a use beyond just the financial: Gold is among our most malleable metals, and the hardness of diamonds has many uses in industry. They are not only valuable because they are scarce; they are valuable for what they are in themselves. Crypto doesn’t have that. It does not have external tools.

Even during devastating economic depressions, gold and diamonds have always been worth something. They have never been worth anything. Crypto could – potentially – crash and be worthless. This volatility is what makes it such a compelling investment: you can make a fortune. Or you could lose your shirt.

Keep an eye on inflation. If prices continue to rise, investors may be tempted to migrate to crypto as a way to compensate for volatile sovereign currencies — and it also poses serious cybersecurity concerns: As the COVID-19 lockdown forced millions of new consumers to rely on e-commerce and home deliveries, was an impressive increase in cybercrime. Inexperienced consumers make more mistakes and are more vulnerable to scams. If and when millions of inexperienced investors adopt crypto, cybercriminals will surely be waiting. It is our responsibility to be ready for the challenge.